You probably know that an IRA is a great way to save for the future. You may even be making contributions to one set up through your work. But did you also know that an IRA can serve as a great investment vehicle? Investors use IRAs to hold a variety of assets, but many don’t know that you can invest in real estate with an IRA too. A self-directed IRA provides a lot of flexibility for real estate investing.
This episode is a special one for Invest Florida. We’ll be covering the many ways to invest in real estate with an IRA in front of our first-ever LIVE audience! Scott Maurer, of Advanta IRA, and investor, Dave Shaw join us for a special panel discussion on investing in real estate using a self-directed IRA.
Scott Maurer joined Advanta out of college. He has since become the Director of Business Development and regularly educates investors on the many advantages to investing through self-directed IRAs.
Dave Shaw is a real estate appraiser-turned investor who uses his self-direct IRA as a lending vehicle.
What You Need to Know to Invest in Real Estate With an IRA
You can transfer funds IRA-to-IRA tax-free
Funds can be transferred as-needed
In Florida, IRAs are only protected against personal creditors, not real estate liabilities
Setting Up A Self-Directed IRA
$50 account-opening fee
One-time $95 investment fee (per investment)
$295 annual account management fee (includes payments and expenses)
Lending Through a Self-Directed IRA
You cannot lend to yourself or immediate family through your IRA
Flexible lending terms – you can write your own agreements
12-15% on 6 month fix-and-flip
10% on 3 year lends
To learn more about how you can invest in real estate with an IRA, call Advanta at (800) 425-0653 or visit their website. You can also check out educational videos and webinars from Scott on Advanta’s YouTube page.
Dave is always looking for single and multifamily deals (4 units and less). You can reach him by email at firstname.lastname@example.org
The national housing market is undergoing a major shift and multifamily investors are taking notice. Through economic and generational factors, the housing market is seeing a lessening demand for single family home purchases. Instead of buying a home, young professionals are opting to rent.
Mark Holmes may know this growing trend better than anyone. As a certified property appraiser with Value Tech Realty, Mark travels the United States appraising multifamily properties. As an appraiser, he understands this rental boom from a valuation perspective. As an active single family investor and passive multifamily investor, he understands what it means from an investor’s standpoint.
This episode, Mark gives us a recap of the the national multifamily market as well as the Florida multifamily market. We discuss the recent rental boom and what it means for multifamily investors.
National Multifamily Overview
63% home ownership, down from 69% (2004)
37% renters: 15 million shift
Financial recession brought on behavioral shift
Job growth jump-started multifamily development
Florida Multifamily Overview
3% job growth
Statewide rent growth: 4%
I-4 Corridor rent growth: 6%
Florida Multifamily Markets
4000 MF units online, last 12 mo.
65% absorption rate
3.7% rent growth
Class A: 4.5% cap rates; Class B: 6%
5,500 MF units online, last 12 mo.
4.8% rent growth
8% rent growth in last 12 mo.
3,500 units online last 12 mo., 3,300 coming
Nearly 100% absorption
3.3% rent growth
4.45% cap rates
49% of income goes to rent
What It Means for Multifamily Investors
Capital looking to invest in multifamily is out there
Class A property growth concessions trickling down to B + Cs
Most buyer interest is in multifamily
Interest rate increases mean cap rate increases
Major market cap rates seeing downward trend
Looking for property appraisals? Contact Value Tech Realty through their website. For single family and multifamily investors looking to work with Mark on a deal, contact him through email at email@example.com.
We started the Invest Florida Show podcast with the goal in mind to create a living archive of actionable, Florida-centric real estate investing information. Not only have we been able to realize our vision, but Invest Florida has grown to become an effective real estate marketing vehicle – not only for our own lead-generation, but for our guests’ businesses as well.
Podcasting has been growing in popularity over recent years and more and more professionals are realizing the potential of a podcast to extend their reach and network.
When Florida Realtor Magazine asked us to contribute to their cover story on the power of podcasts in building a professional brand, we were honored to take part.
Single family investors know that keeping up with rental properties and tenants can be a hassle. In addition to dealing with property management, investors must also manage tenants. While a single family rental is a great way for many to earn cashflow, it can be tough to stay organized.
Our guest this week, Gregory Radford knows a thing or two about organization. A decorated military veteran, Greg became a de facto single family rental investor while still serving in the Army. After renting out his home he had purchased using his V.A. loan, he had his Eureka moment. He saw the investment potential of the V.A. loan and leveraged that into becoming a successful single family investor.
Combining the organizational skills and discipline he learned in the Army with his loquacious attitude, Greg created a strategy for earning hassle-free cashflow through single family rental investments. Starting Radford Homes with his wife, Greg is an active single family rental investor in Polk County.
Federal loan program for military vets to put money down on a home
V.A. loans can be reused as many times as the loan limit allows
Homes must be inhabited for 12 months
Loan limits vary by state/county
Polk County: $424k
5 Tips for Hassle-Free Cashflow
Strategic, intentional marketing
Custom Rental Applications
Send pre-scripted correspondence to potential tenants with explicit application instructions.
Tenants who fail to follow instructions are disregarded
Asking ope-ended questions during tenant interviews
Find out about prior residences
Check social media
Open House for Rentals
Controlled open houses
Open houses 2x/mo. cuts down on scheduling showings and creates urgency among potential tenants
Requiring proof of bank account assures tenant’s financial credibility
All payments sent through electronic funds transfer or cashier’s check
Gary Keller – “Hold”
single family rental investing
Gary Raulston – “Real Estate Principals: A Value Approach”